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Commission Files Order Approving And Adopting SOS Working Group’s Proposed Wholesale Full Requirements Service Agreement and Request for Proposals For 2025-2026 SOS Solicitation
Dockets:
FC1017
Category: District of Columbia
From the District of Columbia Public Service Commission Order:
[ *** ] DECISION 8. The Commission has reviewed the SOS Working Group’s proposed WFRSA and RFP and identified several clerical errors. The Commission, therefore, directs Pepco to revise these clerical errors in the WFRSA and RFP as follows:
- In the RFP, under Section 1, “Introduction,” change “must be replaced in a twenty-first year of bidding” to “must be replaced in a twenty-second year of bidding” since Pepco completed its twenty-first bidding process in January 2025.
- In the RFP, under Appendix E, “Bid Form Spreadsheets” in the Residential and Small Commercial bid form, remove the extra “Price Periods Within Contract Term – P2” for the 6/1/27-5/31/28 service year.
- In the WFRSA, under Article 7.1(j), “Billing,” remove the extra “=” sign in line 5.
- In the WFRSA, under Exhibit E, “Billing Line Item Transfers/Sample PJM Invoice,” in the Sample PJM Invoice in Credits, remove Billing Line Items 2930 Generation Deactivation Credit and 2932 Generation Deactivation Refund Credit. These line items are currently allocated to the Seller, however, they only apply to the generator side and should therefore be excluded.
- The Commission also directs Pepco to make several substantive changes to the WFRSA and RFP. First, in the past, a capacity proxy price has been used for SOS delivery years in which PJM did not run its Base Residual Auctions (“BRA”), as bidders to the RFP must provide capacity as a component of their service and use the results of these auctions to price that component. There is a high probability that the upcoming WFRSA and RFP will still need a capacity proxy price for at least one year of the Residential and Small Commercial product. Pepco proposed using the same method to set the capacity proxy price as it did last year, in which the capacity proxy price, $299.89/MW-day, is based on the average of the two most recent auction results. However, the Commission directs Pepco to set the proxy price in both the WFRSA and RFP at $329.43/MW-day, the most recent PJM BRA result. Future BRA prices are expected to remain elevated in the short term, consistent with recent auction results, and absent significant changes to existing capacity market rules. By utilizing the most recent BRA result as the proxy price, we anticipate a better alignment with future BRA prices, thereby minimizing potential true up costs between the proxy price and actual BRA results and mitigating exposure to market volatility.
- Second, by Order No. 22702, the Commission approved the executed Renewable Energy Purchase Agreement (“Agreement”). Given that these matters are interrelated and that this Agreement will have an impact on SOS procurement once the delivery of energy commences, we take this opportunity to provide bidders with additional clarity by directing Pepco to add the following language to the RFP at the end of Section 2.1, “Supply Requirement Overview,”: “On August 14, 2025, the Commission issued Order No. 22702 approving Pepco’s proposed SOS renewable energy power purchase agreement (“PPA”) for 5 percent of SOS energy. Delivery of energy from the approved PPA project is expected to begin in December 2027. SOS auctions beginning in December 2026 for Delivery Years 2027-2028 and beyond will be adjusted accordingly. There will be no impact on the upcoming auctions scheduled for December 8, 2025, and January 5, 2026.”
- The Commission approves and adopts the SOS Working Group’s proposed WFRSA and RFP for the 2025-2026 SOS solicitation, as modified herein. The SOS Working Group shall file a revised final copy of the WFRSA and RFP by October 6, 2025.
THEREFORE, IT IS ORDERED THAT:
- The Standard Offer Service Working Group’s proposed Wholesale Full Requirements Service Agreement and Request for Proposals for the 2025-2026 Standard Offer Service solicitation, as modified by this Order in paragraphs 8 through 10, are hereby APPROVED and ADOPTED; and
- The Standard Offer Service Working Group is DIRECTED to file a revised final copy of the Wholesale Full Requirements Service Agreement and Request for Proposals for the 2025-2026 Standard Offer Service solicitation by October 6, 2025.
Order (10/01/2025)
FC1017 (02/21/2003)
(In the Matter Of The Development And Designation Of Standard Offer Service In The District Of Columbia)

